When buying a property in the Canary Islands by an individual, it is necessary to pay the transfer tax. This tax is liquidated in the Local Treasury of the Government of the Canary Islands. These are the terms and percentages applicable at a general level. There are a series of bonuses and tax exemptions to take into account in the case that they can be attributed to the person who buys the property.
If the property to be purchased:
A.- The current owner of the property is an individual, the buyer must pay 6.5 % on the purchase price.
B.- If the current owner of the property is a company. In this case, to clarify if it is a first or second transmission, it is necessary to go to article 50 of the law 4/2012 of June 25. As a general summary we can apply the following two assumptions:
1.- If it is a first transmission. The buyer must pay 1% of the price of the property and in addition 7% of IGIC that will be charged by the selling company to the sale price of the property when issuing the sales invoice.
2.- If it is a second transmission. The buyer must pay 6.5% on the sale price.
We will be pleased to advise you and process your taxes at the time of the purchase of your property and in the future if you decide to buy the property or any other investment you wish to make in the Canary Islands.